Do everything to stabilize home prices but minimize ill effectsOn Wednesday, the government announced a plan to supply 155,000 homes by building four new satellite towns around Seoul starting in 2020. The new towns are within a couple of kilometers from the border of the capital, far nearer than the existing satellite cities of Bundang and Ilsan, making them attractive for residents and investors alike.The plan is part of the Moon Jae-in administration's Sept. 21 anti-property speculation measures which include the construction of 200,000 houses by creating up to six new satellite towns. That means it will select two more candidate sites, probably during the first half of next year.The construction of the new towns and homes will surely help stabilize soaring housing prices. Despite the anticipated effects on cooling the overheated property market, the massive building project could result in serious side effects, too. Contrary to the government's pledge not to erode greenbelt areas, it will be next to impossible to build so many new homes without cutting into green spaces, often called the "lungs of a metropolis." If the new cities are reduced to so-called "dormitory towns," they will not be able to become self-sufficient cities while deepening the already worrisome concentration of people and resources in Seoul. Cash-laden investors will also be watching for an opportunity to turn the whole project into another arena of speculation.

No less problematic is the possibility of aggravating traffic congestion if the government fails to provide adequate mass transit. It is natural in this regard for the government to decide to connect the construction candidate sites and transport networks in the capital area, two years ahead of schedule. It is necessary to double the spaces for venture startups and commercial quarters, as these zones will help enhance the new developments' economic self-sufficiency. Given that the new homes will be supplied only after 2021, however, the latest measures will have limited success in stabilizing home prices in the short run. The housing market has remained dormant since strong anti-speculative steps were taken but could resurge at any time. That shows why the government should also be ready to take further action if necessary to ensure a stable market.